{"id":845,"date":"2015-03-17T16:56:09","date_gmt":"2015-03-17T16:56:09","guid":{"rendered":"http:\/\/dev-mhisolutionsmag.officialdirectory.com\/?p=845"},"modified":"2015-06-18T16:48:31","modified_gmt":"2015-06-18T16:48:31","slug":"food","status":"publish","type":"post","link":"https:\/\/www.mhisolutionsmag.com\/index.php\/2015\/03\/17\/food\/","title":{"rendered":"Industry Update: The Food and Beverage Industry"},"content":{"rendered":"

\"shutterstock_145312351\"<\/a><\/p>\n

These days, food and beverage is focused on fresh\u2014and that\u2019s not just in kitchens and restaurants. From farm to fork, the industry is under tremendous pressures that require new approaches.<\/p>\n

For a snapshot of the pressures on food and beverage, look to the category of non-alcoholic beverages, once dominated by a handful of carbonated beverage producers. These days, there are energy and sports drinks, water, pseudo-healthy, fruit juices and more.<\/p>\n

And that doesn\u2019t even take into consideration the plethora of packaging. Coca-Cola, for instance, brought back its popular polar bears in winter packaging and, last summer, kicked off its \u201cSummer of Sharing\u201d campaign by swapping out three of its iconic logos with 250 of the most popular first names among American teens and Millennials and asking them to \u201cShare a Coke.\u201d That idea was to encourage consumers to buy a Coke with their own name on it or buy one for a friend with his or her name on it and was hailed as one of the most successful campaigns of the summer.<\/p>\n

\u201cManufacturers have spent a fortune on focus groups and found that the way things are packaged has a lot to do with sales,\u201d said Barry Evans, vice president of sales for MHI member WRH Marketing Americas. \u201cThe variety of packaging for the same product is becoming bigger and bigger. Colors change with the season. But along with each one of these changes comes a different SKU.\u201d<\/p>\n

An increasing number of products are just the tip of the iceberg when it comes to trends affecting the broader food and beverage industry. Add in more demands\u2014from both consumers and the federal government\u2014for insight into what\u2019s inside those pretty packages. And then toss in a sprinkling of global trends\u2014particularly toward urbanization\u2014to create a recipe that spells lots of new ideas.<\/p>\n

An all-you-want buffet<\/strong><\/p>\n

While the manufacturers may have discovered that a variety of packaging drives additional sales, it also has created some complexity at the warehousing level.<\/p>\n

First, there is the issue of order rotation, especially with seasonally themed products or packaging. \u201cYou don\u2019t want to build up your inventory,\u201d said Greg Chaffee, vice president, food and beverage industry sales for MHI member System Logistics, which offers storage and picking solutions tailored for food, beverage and cold storage. \u201cYou have to turn it over quickly.\u201d<\/p>\n

It\u2019s driving changes in automated storage and retrieval systems. System Logistics\u2019 Fast Rotating Storage system has gotten away from the crane method to a high-speed shuttle car. \u201cIt uses the satellite off the shuttle car to go into the rack and get the pallet and bring it to the shuttle,\u201d Chaffee said. \u201cWe have a much higher throughput and can turn over and rotate the storage must faster.\u201d<\/p>\n

Once off the shelf, though, that stock may find itself mingling with other products in a way that was unheard of until recently.<\/p>\n

\u201cI can remember when a full pallet going out to a customer would have layers of product on it and each layer contained one product, maybe two,\u201d Chaffee said. \u201cOverall, now there often are many SKUs on that pallet. One layer could have eight different SKUs.\u201d<\/p>\n

That requires a restructuring of the traditional ways of managing warehouses, Evans said. \u201cYou have to be able to deliver products from different lines to that same palletizer. What that requires is some kind of system between the end-of-line packaging and the palletizer so that you can defer or buffer the load and give the opportunity for any load entering the system to be delivered to multiple infeed lines and multiple exits.\u201d<\/p>\n

By Sandy Smith<\/em><\/p>\n

Click here to read the full article.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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